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...great banking crisis of 2008 is over. It began last September 15 when Lehman Brothers filed for bankruptcy and bottomed when Citigroup (C) traded below $1 last month. Most analysts believe that mortgage-backed securities which included packages of subprime home loans failed when mortgage default rates went up and housing prices raced down. That is only partially true. Banks made a tremendous series of ill-advised loans to private equity firms, hedge funds, commercial real estate holders, and the average man with a credit card balance which he cannot pay. (See pictures of the top 10 scared traders...

Author: /time Magazine | Title: More Quickly Than It Began, The Banking Crisis Is Over | 4/10/2009 | See Source »

...Boeing announced that its first quarter numbers would be poor. According to Reuters, "Because of the drastic dip in demand, Boeing said production of its 777 minijumbo will fall to five from seven per month beginning in June 2010." In other words, earnings from Boeing are going to be weak for a long time...

Author: /time Magazine | Title: Boeing Proves A Poorly Run Company Can Still Do Badly | 4/10/2009 | See Source »

...Edward Liddy was a model of fiscal discipline. Appearing before Congress last month, he committed the bailout billionaire to pay back its government loans, clean up the financial mess it created and act as "good stewards of the public funds we have received...

Author: /time Magazine | Title: Is AIG Spending Too Much on Public Relations? | 4/10/2009 | See Source »

...spending tens of thousands of dollars every month on four big p.r. firms? Spokesman Nick Ashooh said his in-house communications team needs additional mouthpieces to respond to the "tsunami" of bad news from its collapse last September, including a lavish executive junket and hefty bonuses covered by the $180 billion taxpayer transfusion. (Read "The Bailout Bomb...

Author: /time Magazine | Title: Is AIG Spending Too Much on Public Relations? | 4/10/2009 | See Source »

...unusual for private companies to deploy outside p.r. flacks when they get into trouble. The biggest firms can charge as much as $40,000 a month to deal with fallout. AIG is now 80% owned by the government, which has pumped in public funds to allow the company to cover its claims and not bring down the world banking system with it. But some of that money appears to be financing damage control. Just how much, is the kind of question that publicly financed bodies are obligated to answer. When he was asked for AIG's p.r. tab, Ashooh gave...

Author: /time Magazine | Title: Is AIG Spending Too Much on Public Relations? | 4/10/2009 | See Source »

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